Rogers and BCE cleared by regulators for Maple Leaf deal

Rogers and BCE cleared by regulators for Maple Leaf Sports and Entertainment deal

Competition authorities have given the green light for Rogers Communications Inc. and BCE Inc. to proceed with a joint $1.3-billion deal to buy a controlling stake in pro sports powerhouse Maple Leaf Sports and Entertainment.

Melanie Aitken, the commissioner of the Competition Bureau did, however, note that “serious concerns” have been raised by consumer groups and competing commercial interests of the market power being accumulated under the two telecom and media giants.

“The commissioner is actively reviewing these concerns and will not hesitate to take action should she determine that there has been a violation of the [Competition] Act,” the federal body said in a release late Wednesday.

Bell and Rogers, who compete for television, wireless, Internet and home-phone customers, announced in December they would split a joint controlling stake of 75% in MLSE, which owns NHL franchise The Toronto Maple Leafs, the NBA’s Raptors and pro soccer club Toronto FC as well as real-estate and broadcast assets.

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The deal will see each conglomerate divide up television and online broadcast rights to the various teams and share other revenues generated by MLSE with chairman Larry Tanenbaum, who has seen his stake rise to 25% as part of the deal.

The transaction is one in a string since 2010 that have swept the bulk of the country’s TV and media companies under the fold of the country’s big telecommunications providers.

Beginning with Shaw Communications Inc.’s purchase of Canwest in October 2010, anxieties have risen over how the competing providers plan to cooperate over content sharing deals amongst themselves and with competing TV providers, like Telus Corp. and Cogeco Cable Inc.

BCE has been the most aggressive acquirer, buying up the country’s largest broadcaster and specialty-channel operator, CTV. last spring for $1.3-billion. A $3.38-billion offer on Astral Media Inc. made in March is currently being reviewed by regulators and competition officials.

“Bell’s investment in MLSE is part of its strategy to deliver Canada’s best content across world-leading broadband networks to any screen customers may choose,” BCE said in a statement.

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